The Government has dismissed the notion of a European copyright levy on internet groups such as Google after the incoming EU digital commissioner said such a charge could be introduced as early as 2016.

After German commissioner Günther Oettinger singled out Google when saying he was considering an internet levy, Minister of State for European Affairs Dara Murphy said the idea veered towards protectionism.

Mr Oettinger told German business paper Handelsblatt: "If Google uses and processes intellectual property from the EU, the EU can protect this property and can demand a charge."

But Mr Murphy, who also has ministerial responsibility for data protection, said the notion of a levy was against the principles of Europe’s single market.

"It's important that Europe doesn't lurch further and closer towards protectionism just because – to date – large Silicon Valley companies have been market leaders," the minister told The Irish Times.

"These companies have created tens of thousands of jobs in Europe and particularly in Ireland. Europe needs to compete and not be protectionist, in the best interest of the consumer and also for the people employed in the businesses concerned."

Objective results

Mr Oettinger, who had command of the energy portfolio in the outgoing commission, previously called for Google’s market power to be curbed and said it might be compelled to provide neutral and objective search engine results.

However, Mr Murphy questioned the merits of targeting a specific company in such interventions by a commissioner.

“The very notion of an EU-wide levy, and it is not certain what legal basis in the treaties there is for such a proposal, is wholly counter to our efforts under the EU’s digital agenda, which is a key element of the EU’s overall strategy to deliver smart sustainable and inclusive growth,” the Fine Gael TD said.

“The EU prides itself on ensuring that the principles of the free market are upheld within the single market,” he added.

Competitiveness

He said comments relating to specific companies which appear to be expressly targeted were “unhelpful to our collective and collaborative efforts to enhance Europe’s standing as a knowledge-based economy which can both nurture indigenous industries as well as provide an environment for investment by multinational corporations, many of which invest significant funds in our economies, employ our citizens and ultimately improve the competitiveness of the market.”

The EU had a “resolute commitment” to realising the potential of a digital single market to benefit consumers, he said.